FTX US has obtained a membership to the Futures Industry Association (FIA) and the International Swaps and Derivatives Association, Inc.(ISDA), putting the crypto exchange service on firmer ground when it comes to cleared swaps compliance.
ISDA is an organization with an international membership that draws up agreements for member firms dealing in derivatives. It sets out collective standards governing over-the-counter derivatives transactions in its Master Agreement, and helps individual parties come to individual agreements for standards related to their OTC derivative transactions, like foreign exchange or interest rates.
Overall, admission into the organization creates some degree of standardization among global businesses, enabling greater liquidity since it's easier for them to do business with one another when operating from the same set of standards — the ISDA Master Agreement. It cuts out the need to create individual international agreements. FTX will now leverage that network.
FTX CEO Sam Bankman-Fried tweeted the news today saying the company is looking forward to working alongside ISDA and its CEO Scott O'Malia as the firm continues "to build up crypto derivatives markets in the United States and globally."
This announcement comes a day after Bankman-Fried sat before the U.S. House Financial Services Committee as a witness in its latest crypto-focused hearing. During the session, Bankman-Fried supported a harmonization of regulatory standards for crypto trading platforms.